Landlords 'planning to raise rents'

The cost of being a tenant looks set to continue rising, with four out of 10 landlords planning to raise their rents during the coming year, research indicated yesterday.

Around 41 per cent of landlords in the private sector said they expected to increase rents during the next 12 months on the back of strong levels of tenant demand, according to buy-to-let lender the Paragon Group.

A further 55 per cent of landlords plan to maintain rents at their current level, just four per cent saying they would reduce the amount they charge.

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Nearly a third of buy-to-let investors claim they will raise their rents by up to four per cent, while 10 per cent hope to increase them by between four per cent and eight per cent.

Rents soared to record levels during the second half of 2010, as the supply of rental property failed to keep pace with demand.

The number of people looking to rent a home shows no sign of easing, as would-be buyers struggle to raise the mortgages they need.

Paragon questioned 182 landlords during November.